Zynga in "serious discussions" with SF, but might expand elsewhere

Zynga, the company behind popular social games like CityVille, may have to move outside San Francisco’s city limits if it doesn’t receive the kind of tax breaks being offered to Twitter.

The company recently signed a 10-year lease on a 270,000-square-foot space for new headquarters on Townsend Street, the largest commercial office deal in the city last year.

But Zynga has issued this statement in response to reports the company has warned San Francisco officials that it could still move that corporate flag somewhere else:

“We are looking at a variety of options to grow the company in the Bay Area, and as part of that, we are in serious discussions with the city,” Zynga said. “It would be premature to comment on those conversations at this time. We are encouraged that the city is engaging with us on this issue.”

City officials have proposed giving a payroll tax break to Twitter and other firms that move into a Mid-Market or Tenderloin building. The Board of Supervisors is scheduled to take up the proposal April 5.

Zynga already has more than 1,300 employees, but is still expanding. Reports by the Bay Citizen and others said Zynga was considering future expansion south of the city, leaving Townsend Street as a call center.